Kelly Cassidy established Firefly Computer Services on May 1, 2008. The effect of each transaction and the balances after each transaction for May are shown at the top of the following page.

{Instructions}

1. Prepare an income statement for the month ended May 31, 2008.

2. Prepare a retained earnings statement for the month ended May 31, 2008.

3. Prepare a balance sheet as of May 31, 2008.

4. (Optional). Prepare a statement of cash flows for the month ending May 31, 2008.

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Assets Liabilities + Stockholders' Equity Accounts Cash Receivable + Supplies= Accounts Capital Payable + Stock Fees Dividends + Earned Salaries Expense Rent Expense Auto Expense Supplies Misc Expense Expense a +25,000 +25,000 b. +3,600 +3,600 Bal 25,000 3,600 3,600 25,000 L +22,500 +22,500 Bal 47,500 3,600 3,600 25,000 22,500 d. - 9,000 -9,000 Bal 38,500 3,600 3,600 25,000 22,500 9,000 e 1,250 -1,250 Bal. 37,250 3,600 2,350 25,000 22,500 -9,000 f +18,750 +18,750 Bal.. 37,250 18,750 3,600 2,350 25,000 41,250 9,000 g = 5,750 3,875 1,875 Bal. 31.500 18,750 3,600 2,350 25,000 41,250 -9,000 3,875 -1,875 h -10,000 10,000 Bal 21,500 18,750 3,600 2,350 25,000 41,250 10,000 -9,000 -3,875 -1,875 -1,625 1,625 Bal. 21,500 18,750 1,975 2,350 25,000 41,250 10,000 9,000 -3,875 -1,625 1,875 - 5,000 -5,000 Bal 16,500 18,750 1,975 = 2,350 25,000 -5,000 41,250 10,000 9,000 3,875 1,625 1,875